Kao Corporation Case Study Analysis

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Kao Corporation Case Solution

Kao Corporation Case Study Solution is a well-known name of a New york city based, world's leading company in the food and drink industry. Case Study Analysis is a leading brand name in hassle-free snacks, foods and beverages with its existence in about 200 countries. Significant brand names of the company include; Pepsi-Cola, Frito-Lay, Tropicana, Quake and Gatorade. The core competitive benefit of the business is its ability to market the item at everywhere locations. The company is doing efforts to make item advancement as its brand-new source of competitive advantage.

The report includes a deep analysis of various elements of the social obligations of significant companies in the food and beverage industry in general, and company in particular. The report likewise provides an evaluation of the extent of sustainability and CSR in the Kao Corporation Case Study Solution's service technique along with the decision of how Case Study Solution creates worth for its customers.

Concerns Identification

Case Study Analysis had taken certain crucial actions regarding the environmental impacts of its items, however, these steps are not enough to end up the criticism over the business's obligation towards social and ecological problems. This is needed to take certain tactical actions to change the market position of its certain well-known brands and present Case Study Analysis as a business producing healthy items in the market. In this regard, company and other food and drink companies should use their power to move the consumer taste towards much healthier products to get rid of the restrictions in the development of food industry.

Critical Analysis

For the couple of years, customer food patterns have actually been changed dramatically. The shift from the use of health food to manufactured food has actually highly affected the health of the consumers. Despite of the discovery of contemporary health techniques, the overall health of individuals in couple of years have actually been highly affected. Presently about 1 billion of the people In United States are overweight and at least 300 countless them have weight problems. Kids also facing the problem of obesity. The ratios of obesity in 1980s are quite different from the present ratios. Despite of discovery of health techniques and contemporary ways to control obesity and other diseases, the ratio of obesity has been doubled form the level of 1980. All of the data related to the health problems with the incorporation of manufactured food in the market explain the prevalence of the health concerns associated with food system. These issues are indirectly the outcome of different practices of the food and beverage companies for creating value for their consumers.

Value Development at Kao Corporation Case Study Solution

Kao Corporation Case Study Solution being a giant company in the food and drink market, supplies high worth to its customers by various methods. Value creation in the food and beverage market is done through 2 ways i.e. taste and schedule of the product. Case Study Solution has a competitive benefit in offering its products everywhere worldwide. Its marketing ability makes it able to target a big base of consumers. The business is presented in about 200 nations with a a great deal of well-known global brand names. The far and wide existence of the business products supplies high worth to customers.

The company produces value for its consumers by ways of supplying large number of delicious food products consisting of salt, fat and sugar, which are the ingredients that are directly connected with the emotional core of the customer's brain. The Kao Corporation Case Study Help along with other huge food and beverages business produce worth for its customers by manipulating these ingredients in its products. Case Study Analysis together with other huge business has an interest in discovering methods to increase the customer value from its items through making use of the vulnerability.

Along with it, the company also develops value by ways of integrating the healthy point in its products. The business has done particular efforts in order to supply healthy products and lower the share of Kao Corporation Case Study Help in general environmental destruction. Case Study Analysis has actually taken specific actions connected to the sustainability of people and environment consisting of the 2009 announcement of the ambitious objectives and commitments associated with Case Study Solution items, market and the community.

All of these means have been effective at producing value for the Case Study Help consumers. Increasing health related issues have raised the criticism for Case Study Solution.

Positive Role of Major Food and Drink Companies in Resolving Social and Ecological Costs Connected With the Industry

Major food and drink business including Kao Corporation Case Study Help and so on can play a constructive function in resolving social and environmental expenses associated with the market. The eco-friendly costs connected to food and drink industry include the ecological devastation due to the increase of nitrogen which has led to the minimized water drinking patterns, river contamination, and increased emission of greenhouse gases from soil etc. All these factors leads to ecological destruction which might be a big risk to the presence of mankind in future.

Major cause of these environmental changes is mass use of nitrogen abundant fertilizers and the components by the food and beverage companies. Food and beverage business should play an useful function in resolving these concerns to remove their growth restraints related to the criticism from the ecological communities.

In order to address these issues, the business might either decrease their usage of nitrogen rich active ingredients or take certain actions to lower the amount of nitrogen in the total environment. The business should avoid use of nitrogen fertilizers and ought to locate the items of those farmers that do not use fertilizers for their crop. The companies might also invest in lowering greenhouse gas emissions worldwide. The companies could use sustainable energy sources at their production plant to compensate the greenhouse gas emissions from the usage of nitrogen-rich products.

Together with the environmental costs there are specific social expenses related to the food and beverage industry which should be dealt with by the giant food and drink business to attain the industry development and to prevent the criticism from the environmental communities. Social costs connected with the market includes the increasing health concerns connected to obesity, heart disease, diabetes and so on. Nevertheless, the huge business could play a constructive function in attending to these problems.

The business might move towards more healthy products by decreasing the quantity of harmful compounds in their processed foods i.e. dioxin, which could result in fatal human diseases. The companies might also do efforts to move consumer tastes towards healthy items as they have controlled the consumer taste for couple of years.

Assessment of Sustainability at Kao Corporation Case Study Analysis

There was a potential shift in the business technique and goals at Case Study Help. The new CEO was concentrated on buying healthier items for attaining sustainable development for the business along with supplying healthier future for the people and the world both. Under the new vision, the slogan of the company was also changed from the "enjoyable for you" to "better for you".

Human Sustainability

company acquired Quake Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy beverages and natural beverages to introduce different much healthier items in its portfolio. Despite of being thought about a Case Help's healthy brand, the items of Quaker Oats contained several active ingredients which were hazardous to health.

Together with the inculcation of healthy brands in its portfolio through acquisitions, Kao Corporation Case Study Help has actually taken specific sustainability steps for its market places. Among major examples in this regard is the Company's marketing technique related to schools. The company markets just low calories and nutritious beverages choices in schools.

Another action taken by Case Study Analysis towards human sustainability is the shift of its focus towards research study and development for introducing brand-new and healthy items in its portfolio. The company has actually increased its research study and development budget and has actually introduced an army of health researchers to create particular healthy items.

Environmental Sustainability

Together with the human sustainability, Kao Corporation Case Study Help has taken a number of actions towards ecological sustainability. The company has actually committed to various objectives connected to water, land, product packaging, environment change and community. In this regard, the company devoted to minimize its packaging by millions of tones to avoid high amount of wastages. Moreover, the business has committed to reduce greenhouse gas emissions in addition to the accomplishment of performance in the energy use. company has also tried certain philanthropic activities including a commitment to provide safe drinking water to 3 million people in establishing nations by 2015.

On the basis of above analysis, it might be determined that the company has taken several steps towards human and environmental sustainability. These actions are still not adequate to attain the desired industrial growth and to lower the criticism over the social duty of Case Study Help.

Alternatives

Specific long term strategic alternatives could be obtained for the business on the basis of above analysis. These options can be examined on the basis of the truth that how the alternative would make it possible for the business to achieve its objective of prospective growth and decrease the criticism over the company. The alternatives could be assessed on the basis of the time frame that would be taken by an alternative to be implemented along with the expense and dangers related to the option

Alternative-1: intro of a New Product line Connected to Healthy Foods and Beverages

The very first step that Kao Corporation Case Study Help might take is to introduce a brand-new item line related to healthy food and beverages. The company should present a broad variety of healthier products by using its significant research study and advancement expenditures.

Pros:

• Ability to target large number of customers i.e. health mindful consumers.
• Decrease of the criticism of environmental concerned societies and neighborhood development companies.
• Satisfaction of the social duty by settlement of the hazardous items with healthy products.
• Could be carried out within few years i.e. 3 to 5 years.

Cons:

• Danger of failure of the new items in the market i.e. customers might not like the taste and might decline the healthier products due to the addicting nature of hazardous items.
• The dangerous products in the product portfolio may make the incorporation of healthy products stop working to minimize criticism.
• Substantial expense of research study and advancement required to construct brand-new healthy items.

Alternative-2: High level Acquisition of Health related Companies

Another alternative option to attain the potential growth and decrease the criticism is to get the health associated business at a high level. Investment in these type of companies would permit Kao Corporation Case Study Solution to present a big range of healthier products within a short time duration without any need of substantial research and advancement expenses. The advantages and disadvantages associated with alternative 3 are provided listed below:

Pros:

• Conserving of substantial quantity of research study and advancement costs for brand-new item development.
• Incorporation of new items within two years.
• Capability to target large number of consumers i.e. health conscious consumers.
• Decrease of the criticism of ecological worried societies and neighborhood advancement organizations.
• Satisfaction of the social duty by settlement of the dangerous products with healthy products.

Cons:

• The acquisition may not show to change the image of Kao Corporation Case Study Analysis as in case of Quaker Oats.
• Requirement of big amount of capital.
• Threat of failure of the brand-new products in the market i.e. customers may not like the taste and might decline the much healthier products due to the addictive nature of hazardous items.
• The dangerous items in the item portfolio may make the incorporation of healthy items stop working to decrease criticism.

Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio

Another alternative option for Kao Corporation Case Study Solution is to replace all of its hazardous products with healthier items. This could be a big shift in business method and the business design at company. The replacement of dangerous items with healthier products would completely change the market position of the business and would require a large number of required actions to be taken. The pros and cons associated with alternative 3 are offered listed below:

Pros:

• Change of market position of Kao Corporation Case Study Help
• Capability to target large number of customers i.e. health mindful consumers.
• End of all of the criticism of ecological concerned societies and neighborhood advancement companies.
• Satisfaction of the social duty

Cons:

• Risk of failure of the new products in the market i.e. consumers might not like the taste and might not accept the healthier products due to the addictive nature of dangerous items.
• Huge cost of research study and development needed to build new healthy items.
• Employee may resist over the change in the business design and service method.
• Variety of years needed for the execution.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the business's CSR, problems faced by the company and the existing industry circumstance, Case Study Solution is recommended to consider alternative 2 of high level of acquisition of health related companies. As the acquisitions would allow the company to save of substantial amount of research study and advancement costs for new product development. Along with it, acquisitions would enable incorporation of new products within two years along with the capability to target big number of customers.

This Kao Corporation case study is writen by : John A Quelch

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